| Here are the definitions to help evaluate
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| | exploit this anomaly in vehicle residual
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| vehicle residual values
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| | values in a Lease calculationThe easy
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| Vehicle residual value
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| | way
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| This is the value that the manufacturer,
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| | On the Internet, search for any
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| not the dealer, says the car will be
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| | manufacturer's web site and simply find a
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| worth at the end of the lease. Sometimes
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| | lease payment by focusing on any higher
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| it is a percent, such as 60% of the MSRP,
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| | quality car costing a few thousand
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| the price of the car. A $20,000 car with
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| | collars more than your initial choice.
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| a 60% vehicle residual value would have a
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| | Ignore the fact that the residual value
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| residual value of $12,000.The lease
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| | is not given. What you're really after is
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| contract says you can rent this $12,000
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| | a monthly lease payment on a Vehicle B
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| for x years by simply paying a percent,
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| | that is the same, or almost the same, as
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| such as 4% of the $12,000, or .04 times
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| | the lease payment on the initial vehicle
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| $12,000 divided by 12 months or $480/12
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| | A that you chose.The hard way
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| equals $40/month Amortization
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| | To narrow your search for a secondary
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| The $8,000 left (the $20,000 car price
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| | choice, be sure to limit it to a vehicle
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| minus the $12,000 residual value) is a
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| | that has a higher residual value
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| standard loan, just like a house
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| | percentage. Because few car manufacturers
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| mortgage, which requires a monthly
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| | will provide the residual value on the
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| payment for not only the interest but
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| | Internet, go to other sites that do offer
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| also a little of the $8,000. This will
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| | this information. To get the percentage
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| always be a much larger payment than the
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| | residual value, divide the vehicle
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| interest paid on the residual value.
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| | residual value by the MSRP and you have
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|
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| | the percent. Example: 12,000/20,000
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| Here is where the magic is
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| | equals 60%.After initially deciding on
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| Higher quality cars, such as a BMW or
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| | what car to lease, get a lease proposal
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| Mercedes or Lexus, will always have a
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| | on a different make that costs as much as
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| higher relative vehicle residual value
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| | $5,000 more. You can do a lot of this
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| than a Chevy or Pontiac or Dodge. That
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| | secondary searching on the Internet. Make
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| means that although the interest paid on
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| | sure each choice has similar features and
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| the higher quality vehicle residual value
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| | that neither one is loaded with a lot of
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| is more than that paid on the lower
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| | optional accessories.
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| quality car, the monthly payment paid on
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| the depreciation is a lot less, so that
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| | The next step is to actually visit the
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| the sum of the two on a BMW can be the
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| | second choice dealer showroom and see if
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| same as the sum (the lease payment) on a
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| | Car B meets your needs, such as comfort,
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| lesser quality car.Use the resource box
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| | room, and any other requirements that led
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| at the end of the article to see an
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| | you to pick vehicle A in the first place.
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| actual example of two vehicles having the
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| | Ignore its price, because you're only
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| same lease payment but differing in price
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| | concerned about its monthly lease
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| by several thousand dollars.How to
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| | payment.
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